How to Pick the Right ICO for Investment
The rise of cryptocurrency in the investment world has caught the attention of investors and traders alike wanting to get a piece of the pie. At Altcoin Fantasy, a free crypto currency simulator, we support over 1600+ coins/ICOs/tokens for players to play via our weekly contests, risk free. One question you might ask though is, what are the essential ICO qualities to look out for that will bring about the best chance of success? Here are a few tips on how to select the right ICO investment. Note this is not investment advice — please do your own research prior to investing in anything.
Know The Team
One of the most important aspects to selecting an ICO is to the team behind the project. ICO’s are generally new teams with the members being selected for their experience in the industry. As part of Doing Your Own Research (DYOR), it’s important to investigate the profiles of the team members and any prior projects they’ve been a part of.
A proven track record is a good sign that it has the potential to disrupt an industry. Lacking any signs of cryptocurrency expertise should raise some concerns especially if there’s not a lot of tech history at all.
Other ICOs are looking to expand their efforts in an already existing company. For example Cryptopay, a U.K based company in the Bitcoin wallet niche, held an ICO due to high demands from their customer base as well as improving its crypto-driven services.
Look For The Disrupters
Go for unique but valuable coins or tokens that are chasing a monopolistic or otherwise imperfect industry that’s ripe for disruption. Far too many ICOs are driven with the intention of just getting into the same industries as other tokens but offering a cheaper or faster ways of doing it. While this innovation is needed, ICOs that are looking to disrupt a unique industry present a big upside potential.
Innovation is the key to striking gold for an ICO investment. Products should address a real need using a revolutionary method. Look into ICOs that seeks to disrupt status quo of a specific industry leveraging on blockchain technology.
Deep Market Understanding
It’s important to see the relevance of blockchain to their target market. Just like any market, these ICOs are subjected to regulatory pressures and market demands. This means that there needs to be a good sized, or a lucrative market behind the industry.
As an example, EventChain (a recent sponsor of Altcoin Fantasy competition), is targeting the event ticketing industry which is a large and lucrative industry to focus on. While there are a couple of competitors in this space, the industry is large enough that multiple projects can be highly successful in the space.
A good question to ask is, “Does this ICO carry something that this industry will greatly benefit from compared to its much larger competition?”
Investors need to look into the technology behind the project if it’s going to be a worthy investment in the long run. ICOs that already have a functioning technology will get a better chance of working in a practical and realistic environment than those that have yet to put it into practice. Always keep an eye on the tech & try to only invest in ICOs that either have a release, or are close to a release on their roadmap.
Whitepaper is a document showcasing how the project intends to disrupt an industry. It should clearly outline their intent, roadmap, and technology needed to succeed. Reading and understanding the whitepaper is probably on of the most comprehensive way that you can get a good understanding about the project in general.
How are the coins used?
With ICOs, it can be easy to get excited about the industry disruption, but something that is often overlooked is the utility of the coin or token itself. Will the token be used as a currency to buy or sell the product? Will the coins be held and used to support the network like in a masternode coin? Or will they be used similar to a stock in a company, where the more you hold, the more “dividends” you’ll receive through Proof of Stake payments?
Once an ICO is completed, you may notice that it begins to get listed on exchanges. Once this happens, your investment can be cashed out at any time by selling the coin to other buyers. You may also notice that the coin begins appearing in the Altcoin Fantasy cryptocurrency trading games. Using these crypto competitions, you’ll start to learn about the fluctuations of your coin or token and become better at buying low and selling high.
Don’t know where to start? Altcoin Fantasy is the best cryptocurrency simulator game where users learn to trade cryptocurrencies risk free. Users start with a $10,000 virtual USD demo account, and make trades during the contest period. At the end of the contest, the players with the most net worth will win actual crypto! Learn crypto trading with our trading sim on the best crypto trading platform!